What does "loss of use" coverage provide in a property policy?

"Loss of use" coverage in a property policy addresses the situation where a policyholder is unable to live in their home due to a covered loss, such as fire or water damage. It provides financial support for additional living expenses that the policyholder incurs while their home is being repaired and is uninhabitable. This might include costs for hotel accommodations, temporary housing, and increased living expenses such as meals and transportation.

The primary intention of this coverage is to ensure that the policyholder can maintain a standard of living during the time their property is unlivable, restoring their comfort as much as possible in the face of a loss. This distinguishes it from other property coverages that may focus strictly on repairing or replacing the damaged property itself.